Institutional investors who shorted Bitcoin accounted for 80% of weekly inflows

Institutional investors who shorted Bitcoin accounted for 80% of weekly inflows

Institutional investors loaded up at a record $ 51.4 million with investment products offering exposure to shorting the price of Bitcoin (BTC) last week.

According to data from the latest issue of CoinShare’s weekly “Digital Asset Fund Flows” report, there was $ 64 million in inflows for digital asset products between June 27 and July 1, with short BTC funds representing 80% of this figure.

US-based investors accounted for the bulk of the $ 46.2 million injection, with BTC short-term investment products in solid demand after ProShares launched the first US-based short-term Bitcoin-traded fund (ETF) ever on June 22. The ETF is traded under the ticker BITI and offers shorting exposure via futures contracts.

“This highlights that investors are adding long positions to current prices, with the inflow to short-Bitcoin possibly due to first-time availability in the US instead of renewed negative sentiment.”

CoinShares also noted that institutional investors from Brazil, Canada, Germany and Switzerland acquired $ 20 million worth of crypto-investment products. Sweden partially compensated for this figure with outflows worth 1.8 million dollars.

Short BTC products have now seen year-to-date inflows totaling $ 77.2 million, with the figure placing it behind only multi-asset products and Solana (SOL) products, which have provided an inflow of $ 213.5 million. dollars and 110.3 dollars worth inflows so far in 2022.

Looking at the inflow of other digital asset products, those offering exposure to Ether (ETH) generated $ 4.9 million, marking the second week in a row of inflows following a long 11-week trend in waste. However, so far this year, ETH funds are still down with outflows worth $ 450.9 million.

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The rest of the injections were distributed to multi-asset funds at $ 4.4 million, while SOL, Polkadot (DOT), Cardano (ADA) and BTC products also posted smaller injections of $ 1 million, $ 700,000, $ 600,000 and $ 600,000, respectively.

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The increase in short BTC fund inflows last week also follows from last week when it was $ 423 million worth of outflows for digital asset products, the highest amount ever on CoinShares’ records. In particular, short BTC funds escaped the carnage that week, posting $ 15.3 million in supplies, while BTC products saw significant outflows of $ 453 million.